Vodafone sinks-Amazon's smile: Vodafone Idea's ship sinks in financial debt

The two verdicts in the last three days have shocked two very reputed companies. One is Vodafone Idea and the other is Reliance. Both of them were popular and both of them were ready to face any trouble. But the Supreme Court ruling has brought both to earth. The Indian judiciary should be saluted for the order that it did not shame any foreign company Vodafone or allow any influence of Asia's richest man Mukesh Ambani to affect the verdict.

Both these judgments have enhanced India's credibility globally and boosted the confidence of foreign investors seeking to invest in India. When the first verdict came from Vodafone, it seemed that the verdict against Vodafone would have a serious impact on foreign investors and people would be afraid to invest in India. The day after the controversy erupted, the Supreme Court strengthened the confidence of foreign investors by ruling in favor of US company Amazon.

Foreign investors have breathed new life into the Indian economy. Even in the Corona era, foreign investment should not be forgotten as the Sensex of the Indian stock market crosses 7,000. Vodafone's debt is so large that no one but the government can support it. The verdict against Vodafone has put Vodafone in a bind, while the verdict in favor of Amazon has forced Mukesh Ambani's Reliance, which is running like an elephant in India's economy, to drink a dose of bitter Sudarshan powder. The Supreme Court judgment has shown that no matter how big the company is, the laws are the same for everyone and everyone will have to abide by them.

Fifteen days ago, Vodafone Idea could not have imagined that it would come to an abrupt end and it would have to reach out to investors out of desperation. On the one hand, the company was in a hurry as the debtor and the Supreme Court reversed the verdict and the partner, stakeholder Kumar Mangalam Birla, conceded an early defeat. Vodafone's CEO also lost his temper and Vodafone became financially strapped.

Another foreign telecom company from India is booming. To save Vodafone from sinking, its CEO Nick Reddy said, "We don't want to withhold more money anymore." Vodafone Idea was earlier hit by a Supreme Court ruling. This was the third blow to the fund-raising companies after the verdict, and the last and fourth blow was struck by Kumar Mangalam Birla, who had a 5 per cent stake, resigning as chairman.

Vodafone will say goodbye to India, which will have a direct impact on India's foreign direct investment. Vodafone is one of the world's leading companies. Vodafone operates in 21 countries. Vodafone has so far had to do business in two countries. One is Egypt and the other is probably India.

The fourth foreign company to enter the telecom sector in India has to tie the knot. Earlier, Atticult, Maxis and Telenar also had to leave the Indian market. There is also a debate as to why foreign telecom companies are not good in India. If Vodafone leaves India, it will be a shock. International telecom company Etisalat boomed before entering India, but Vodafone was woven with the people of India. His name was popularly known. The company, which has 20 million customers, is set to be the talk of the town when it collapses due to the economic downturn.

As Vodafone's departure from India becomes more certain, those who come up with ideas on how to support it have also come to the fore, but the company's huge debt is hampered.

Speaking of Amazon's victory, Reliance also signed a deal with the person with whom Amazon had signed, namely Kishore Biyani's Future Group. Apparently this was a breach of contract with Amazon. The case went to court. The ruling in favor of Amazon hit Reliance hard as the deal stalled.

Mukesh Ambani's Reliance was against the US company in the cut-throat competition in the e-commerce sector. The effect of both these judgments is also immediately noticeable. Kishore Biyani has been hit hard by the pro-Amazon verdict but the case was against Reliance against Amazon.

The court has sent a direct message to Amazon's VodafoneIde India's Reliance and Kumar Mangalam Birla that India's judiciary is not ashamed of anyone. Both these judgments have sent a clear message to the corporate world that India's judiciary is on the side of truth.

Vodafone's Achutam Keshavam

Every word is on whether the government will allow Vodafone Idea to sink or get rid of it. Vodafone's CEO has given up, but India is looking to build a positive image on the boards of foreign companies. As of this writing, there is no movement from the government. The sinking of Vodafone was expected to have a serious impact on India's foreign direct investment, but the Supreme Court's ruling in favor of Amazon yesterday has improved India's image. Improvement here should be understood as winning the trust of foreign investors.

Teen Biyan goes bankrupt in fight between two elephants (Amazon-Reliance)

India's largest and Asia's richest man Mukesh Ambani's company Reliance Retail was snatched from the mouth by the world's richest man and Amazon boss Jeff Bisoz. Reliance, which suffers from the mentality that it can do it on its own, has got a bad name. Kishore Biyani, chairman of Future Group, has suffered a fatal blow in the court battle between Amazon and Reliance. With a debt of Rs 10,000 crore, Biyani joined hands with Amazon's Jeff Bisoz and struck a deal with Reliance's Mukesh Ambani. Breaking the agreement with Amazon and joining hands with Reliance was very costly. Before the Corona era in 2008, the Future Group was in turmoil. In 2021, it had deteriorated further. The history of 9-year-old Biyani is full of struggles. Kishore Biyani, who owns a small similar shop in Mumbai, became India's largest off-line retail company due to his talent. After the start of online retail, Kishore Biyani became more relaxed and was ready to sell his network to Reliance Retail in August last year. However, he had earlier struck a deal with Amazon. As soon as it was revealed that Kishore Biyani had struck a deal with Reliance, Amazon immediately objected. The legal battle lasted a long time. In a battle from Singapore to the Supreme Court, the Supreme Court ruled two days ago that Amazon is right and Kishore Biyani is wrong. Dealing with Reliance was a hope for Indian banks to get their sunken money out. The future of banks worth Rs 50 crore has also become bleak. Reliance was of the view that Indian courts would not tie up foreign companies and victory would be for Reliance. The ruling has had a positive impact on foreign investors in India. The deal was stalled. It is said that Kishore Biyani landed on Tussle with the American company Amazon. His words were bolstered by Reliance. India's Reliance could not be arbitrary and in the end became notorious in the world.

How can Vodafone Idea survive?

• At present, the government is the only support.
• The Dutch bank has come up with the idea that Vodafone Idea's debt could be saved from sinking if the government converts it into equity.
• Debt-ridden BSNL cannot be further burdened by the government.
• There is also an idea that if Airtel and Reliance Jio help and buy some stake, Vodafone will survive..but why give any oxygen to its rival?

What happens if Vodafone Idea sinks?

• Losing a reputed unit like Vodafone is not affordable for India as a monopoly like Reliance could emerge in the telecom sector.
• If the shutters of Vodafone Idea fall, it could have the opposite effect on foreign direct investment.
• The air that the Indian government is not helping foreign investors may gain strength.
• Laws in India are such that it does not allow any foreign companies to invest.
• Controversy may arise over how to repay the debts of Indian banks.
• The telecom sector is experiencing a major uproar. Having three companies allows customers to see competition in terms of schemes etc. and get good service.
• India's image among foreign investors could be further strengthened. Rumors that the Indian government does not come to the aid of foreign companies can be dispelled
• Banks in India hope to get back their sunken rupee
• Customers associated with Vodafone do not have to worry about companies like BSNL.
• The message that the Indian government is coming to the aid of foreign companies in times of trouble can reach foreign investors.